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Banks pledge not to pull plug on Carillion subcontractors

Major banks are vowing to support suppliers hit by the collapse of Carillion.

Representatives of Barclays, HSBC, Lloyds, RBS, Santander, Shawbrook and Aldermore met with ministers on Wednesday to discuss the fall out from Carillion’s demise.

Business Secretary Greg Clark said: “It is essential that small businesses exposed to the Carillion insolvency are given the support they need by their lenders.”

Following the meeting banking trade body UK Finance issued at statement which said: “UK banks and the Government are working closely to make sure the impact of the Carillion liquidation on SMEs in the supply chain is understood and managed in a way that best supports those in need of assistance.

“Lenders are contacting customers and, where appropriate, are putting in place emergency measures, including overdraft extensions, payment holidays and fee waivers to ensure those facing short term issues can be helped to stay on track.”